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Should Updates be Done Prior to Listing a Small Older Home?


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#1 Pet Owner

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Posted 20 November 2017 - 12:52 PM

My small 2 bed, 1 bath home in Victoria, circa 1948, sits on a lot of just over 5000 sq. ft.   It has double glazed windows, a roof under 10 years old, updated baseboard heating, and a freshly-painted exterior.  But frankly the interior is a good many years behind the times cosmetically and could do with updating to the bathroom, kitchen and flooring.   I could afford to put $15-$20k into upgrades, but that would not allow for all of the work to be done.   

 

But lately I've seen a lot of smaller homes in my community being torn down and replaced with large two-storey new builds.

 

So my question is:  In a scenario like this, is it advisable to do some updating before selling or just list as is?  



#2 Mike K.

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Posted 20 November 2017 - 03:03 PM

No, I wouldn't worry about it. Chances are whatever work you do the new purchaser would have preferred to have done differently and you're not always guaranteed to recoup the money you plunked down in upgrades.

 

What's the price you're looking to fetch, and what's it assessed at?


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#3 rjag

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Posted 20 November 2017 - 03:28 PM

The value is primarily in the land and most small places like this would be looked at as development property. That being said someone may love it the way it is and want to apply their own updates....best thing to do is have your realtor do a walk through


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#4 MarkoJ

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Posted 20 November 2017 - 03:31 PM

My small 2 bed, 1 bath home in Victoria, circa 1948, sits on a lot of just over 5000 sq. ft.   It has double glazed windows, a roof under 10 years old, updated baseboard heating, and a freshly-painted exterior.  But frankly the interior is a good many years behind the times cosmetically and could do with updating to the bathroom, kitchen and flooring.   I could afford to put $15-$20k into upgrades, but that would not allow for all of the work to be done.   

 

But lately I've seen a lot of smaller homes in my community being torn down and replaced with large two-storey new builds.

 

So my question is:  In a scenario like this, is it advisable to do some updating before selling or just list as is?  

 

This sounds like a potential tear down depending on the area. Typically it doesn't make sense to update a 2 bed/1 bath, but than again everything is property specific. If I was in your situation I would get three different opinions.


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#5 johnk

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Posted 20 November 2017 - 07:57 PM

Paint is the fastest, cheapest way to bump up the price. Whatever you do I dont think you would go wrong following rjag's advice. The value is in the land.
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#6 VicHockeyFan

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Posted 20 November 2017 - 10:02 PM

I'd be careful.  Where is the property located, what neighbourhood?


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#7 Pet Owner

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Posted 20 November 2017 - 10:53 PM

The property is in Oaklands.  A great location.  I'm not looking to sell imminently but rather was weighing the benefits of doing some updating over the next year or so.  But then, as I said, I've been seeing several other small houses in the district being torn down and large homes built in their stead, so I started to question whether updates would add value.  Thanks for all replies.  The input and suggestions are much appreciated.


Edited by Pet Owner, 20 November 2017 - 11:08 PM.


#8 lanforod

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Posted 21 November 2017 - 08:17 AM

It's really a personal decision. You typically won't get your money back out of upgrades when you sell. So the real question is: how much would you enjoy the upgrades yourself until its time to sell, and is that enjoyment worth the cost to you?


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#9 VicHockeyFan

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Posted 21 November 2017 - 08:24 AM

It's really a personal decision. You typically won't get your money back out of upgrades when you sell. So the real question is: how much would you enjoy the upgrades yourself until its time to sell, and is that enjoyment worth the cost to you?

 

That's the best way to put it.


<p><span style="font-size:12px;"><em><span style="color:rgb(40,40,40);font-family:helvetica, arial, sans-serif;">"I don’t need a middle person in my pizza slice transaction" <strong>- zoomer, April 17, 2018</strong></span></em></span>

#10 29er Radio

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Posted 21 November 2017 - 08:26 AM

It could be helpful for you to know if you would sell for the tear down price. If you can get a handle on what the most expensive houses are selling for in your neighbourhood then you can get some idea of what a it would cost to build a similar house and then subtract the construction cost and you are left with the land value a developer might pay. If that number is well below what you would sell for then potentially upgrade in the most beneficial ways,(kitchen,baths, paint and basic landscaping).


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#11 Mike K.

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Posted 21 November 2017 - 08:32 AM

Yes, absolutely. The sale price has a lot to do with it.

How big is the lot? What’s your asking over assessed, etc? Those are key pieces of info.

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#12 VicHockeyFan

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Posted 21 November 2017 - 08:34 AM

5000 sq. ft.  It's in the original post.  Try to keep up.


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<p><span style="font-size:12px;"><em><span style="color:rgb(40,40,40);font-family:helvetica, arial, sans-serif;">"I don’t need a middle person in my pizza slice transaction" <strong>- zoomer, April 17, 2018</strong></span></em></span>

#13 Mike K.

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Posted 21 November 2017 - 08:59 AM

Right.

Being in the market myself I’m seeing a lot of homes priced at their top-end equivalent even if they’re in a state that will require the owner to really push ahead with upgrades or repairs.

So in this market, to be honest, maybe it doesn’t even matter what condition the home is in. It’s going to sell at any price that is just below outrageous.

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#14 VicHockeyFan

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Posted 21 November 2017 - 09:52 AM

In every market, any time, any region, homes sell for the price people are willing to pay for them.  


<p><span style="font-size:12px;"><em><span style="color:rgb(40,40,40);font-family:helvetica, arial, sans-serif;">"I don’t need a middle person in my pizza slice transaction" <strong>- zoomer, April 17, 2018</strong></span></em></span>

#15 johnk

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Posted 21 November 2017 - 10:12 AM

In every market, any time, any region, homes sell for the price people are willing to pay for them.

True, dat. Since forever.

#16 Mike K.

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Posted 21 November 2017 - 10:15 AM

And then there are those properties that just sit. Sit. And sit some more.

There are these two homes I’ve perused on the MLS that are price at that outrageous amount I mentioned and they’ve been on the market for 100 days. If they were priced below outrageous, they’d move.

Oh, and here’s another thing to consider. Have inspections done on your home before you list. I’m encountering sellers who have no idea about major issues that are only uncovered once a buyer has an inspection done. One home in particular that I viewed had a huge problem brought to the seller’s attention and that killed an accepted offer, threw a real monkey wrench into the whole equation and dropped the asking price by quite a bit. It also frustrated buyers.

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#17 lanforod

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Posted 21 November 2017 - 11:15 AM

^ if you know about issues, you have to put it on the disclosure. If you don't know... theres a chance the house sells with issues unknown.


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#18 VicHockeyFan

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Posted 21 November 2017 - 11:34 AM

^ if you know about issues, you have to put it on the disclosure. If you don't know... theres a chance the house sells with issues unknown.

 

That's exactly what I was about to say.  Some people do not go looking for trouble.  I've gone into a million attics to check roofing decking, and truss situations, and I can not tell you how many homeowners I encountered that were not even sure where their attic access was, let alone ever been into it.


Edited by VicHockeyFan, 21 November 2017 - 11:36 AM.

<p><span style="font-size:12px;"><em><span style="color:rgb(40,40,40);font-family:helvetica, arial, sans-serif;">"I don’t need a middle person in my pizza slice transaction" <strong>- zoomer, April 17, 2018</strong></span></em></span>

#19 Mike K.

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Posted 21 November 2017 - 12:32 PM

Every single home will be sold with issues unknown, you can't check for everything and some things will literally break the day after moving in.

 

But, as the seller if you're caught with your pants down and realize that you a) have to suddenly carry out unexpected work with contractors as delayed as they or b) have to lower your price so that the buyer can carry out the work upon purchase you a) run the risk of losing good offers and b) run the risk of scaring away buyers unless you really make it worth their while.

 

I've found myself in exactly that situation where the seller was made aware of a major issue and the result was an epic clusterfluck, a collasal waste of time and unnecessary angst between potential buyers and the seller, the agents, etc.


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#20 Bingo

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Posted 21 November 2017 - 12:36 PM

  I've gone into a million attics to check roofing decking, and truss situations, and I can not tell you how many homeowners I encountered that were not even sure where their attic access was, let alone ever been into it.

 

For many people that had trouble accessing their attic, brain surgery was the only solution.



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